Committee recommends adopting at 1st reading bill on abolishing duty-free car import – MP

KYIV. April 29 (Interfax-Ukraine) – The Parliamentary Committee on Finance, Taxation and Customs Policy has recommended the Verkhovna Rada to adopt bill No. 7311-d at the first reading, which proposes, in particular, to abolish VAT, excise and duty privileges for the import of vehicles, deputy head of the committee Yaroslav Zhelezniak has said.

"The Tax Committee recommended passing at the first reading a new draft of tax changes to the current realities of the war and the economy – high-profile bill No. 7311-d," Zhelezniak wrote on Telegram on Friday.

The draft law proposes to abolish privileges for the payment of VAT, excise and duty on the import of vehicles.

"Unfortunately, this option has been used a lot in order to import luxury foreign cars inexpensively, so it had to be removed. There are still benefits for the import of all-wheel drive jeeps until 2017, which are necessary for the needs of the Armed Forces," Zhelezniak said.

In addition to the above, the bill proposes to abolish the exemption of companies from VAT and import duties on a simplified taxation system.

At the same time, fuel is proposed to continue to be subject to a reduced VAT rate and without excise duty, the MP noted.

The bill also provides for an increase in the military tax rate from current 1.5% to 3% for the period of martial law, as well as a return to the issuance of VAT bonds as a budgetary refund of this tax for January 2022.

Draft law No. 7311-d also provides for the rejection of a six-month deferment after the end of martial law for tax payments if it is impossible to pay now.

"Such a benefit remains for those who are in the territory where hostilities are taking place," Zhelezniak said.

The draft law also provides that for the period of martial law and another 180 days, pensions are assigned to undocumented internally displaced persons based on data from registers.

As the parliamentarian pointed out, the bill also proposes to resume desk audits of the timeliness of filing reports and paying taxes, and to allow the import of tractors, trucks, special equipment that meet the Euro-3 criteria into Ukraine for the period of martial law.

At the same time, it is assumed that the period of non-payment of the single social security tax by private entrepreneurs will be included in the length of service.